Investors have got a big setback in the huge fall of the market. The market cap of companies listed on BSE has fallen by about Rs 3.5 lakh crore in a few hours.
Why Stock Market Crash Today: Today again heavy selling is being seen in the stock market. Sensex has broken 1000 points in trading. In intraday, it has weakened to the level of 57,914. On the other hand, Nifty also came near 17300 after breaking 300 points in intraday today. Investors have got a big setback in this huge fall of the market. The market cap of companies listed on BSE has fallen by about Rs 3.5 lakh crore in a few hours. Let us tell you that since the next day of the budget, there has been a sell-off in the market on most of the trading days. After all, why has there been such a huge fall in the market, know some special reason behind it.
Strong rise in bond yields
Swastika Investmart Ltd. Head of Research Santosh Meena says that global factors are the main reason behind the fall in the market. The 10-year bond yield in the US has risen sharply. It has gone beyond 2 per cent. It is at a 4-decade high. At the same time, according to the way inflation has increased in the US, there is full hope of further tightening of interest rates. Due to this, the sentiment of the investors has deteriorated and there has been a lot of selling in the global market. This is having an effect on the domestic market as well.
still bullish on the market
He says that if we talk about Nifty, then the cluster of 20-DMA and 100-DMA has formed strong resistance for the index at 17600-17650. While the level of 17300 is still a strong support for Nifty. Even in today’s trading, the index has managed to stay above it. The level of 1700-16800 is a critical demand zone for Nifty. Overall, as long as it remains above 16800, there will be a bullish view on the market. For Nifty, multiple resistance is formed at the level of 17800, but if this level is broken, the index can reach fresh all-time high.
FIIs are constantly selling
Foreign investors are once again engaged in withdrawing money from the market. Foreign Institutional Investors (FIIs) withdrew Rs 1732.58 crore from the market in the trading of February 10. However, during this period, Domestic Institutional Investors (DIIs) invested Rs 1727.23 crore in the market.
American investors fear
Sentiments have deteriorated since the inflation data arrived in the US. There was a huge fall in the US markets on Thursday. There was a weakness of 526 points in Dow Jones. There was a weakness of 305 points in NASDAQ. The S&P 500 index also closed 83 points lower at 4,504. Prices have increased more than expected. There is a fear among investors that the US Fed may adopt a more strict stance to control inflation. The 10-year treasury yield has crossed 2 per cent.
crude prices high
Brent crude prices remain high. Recently it touched the level of $ 94 per barrel. However, it is still made at $ 91 per barrel. So far this year it has increased by 17 percent and in one year it has increased by 61 percent. If the tension between Russia and Ukraine increases further, then crude can show a range of $ 98 to $ 100.
3.5 lakh crore cleared in few hours
Investors have got a big setback in the fall of the market today. The market cap of companies listed on BSE was Rs 2,67,81,364.27 crore at the close of the market on Thursday. At the same time, in today’s trading around 12 noon, it came down to Rs 2,64,23,446.05 crore. That is, in a few hours, 3.5 crore investors were cleared.
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